Oil weighs on Europe stocks as dollar pares drop

London - Weaker oil prices helped drag European shares lower while a gauge of the US dollar flirted with its longest losing streak since Donald Trump won the election.

The yield on 10-year US Treasuries steadied after Friday’s decline to the lowest in two weeks.

The Stoxx Europe 600 Index retreated, with oil and gas companies leading declines as crude slipped for the ninth day in 11. While the greenback fell against most of its major peers, the Bloomberg Dollar Spot Index pared its fourth daily loss to trade little changed. Gold touched the highest level in two weeks.

The US currency slumped last week after the Federal Reserve delivered a more dovish message than expected, even as it raised interest rates.

Investor focus on Monday turned to the outcome of a G20 meeting, where finance ministers locked heads before issuing a statement that dropped a reference to resist all forms of protectionism. That’s renewing concerns about the US president’s desire to pursue new trading terms.

What’s coming up this week:

UK inflation may have edged above the 2% target in February, data may show on Tuesday, and retail sales probably rose. March PMI for France is due on Friday, along with final fourth quarter GDP figures. There’s a torrent of Fed speakers this week, headlined by Janet Yellen on March 23.

Central bank policy decisions in New Zealand, Philippines and Sri Lanka. Japan Prime Minister Shinzo Abe to host trade talks with the European Union on Tuesday.

Here are the main market moves:

Currencies

Bloomberg’s dollar index was little changed as of 12:16. The euro climbed 0.1% to $1.0753, while the British pound also gained 0.1%. 

Stocks

The Stoxx Europe 600 Index fell 0.2% with oil and gas companies down 1.2%. Futures on the S&P 500 Index were down 0.2%. The underlying gauge rose 0.2% last week. 

Bonds

The yield on 10-year Treasuries was little changed at 2.5% after falling four basis points on Friday. German bonds traded changed, with volumes very poor. Ten-year bund futures volumes were running at around 60 percent of the five-day average.

French bonds were also little changed ahead of France’s first televised election debate this evening. Short-dated Spanish and Italian bonds outperformed, ahead of the ECB’s long-term refinancing operation later this week.

Commodities

West Texas Intermediate crude slid 1.4% to $48.09 a barrel. It has dropped 11% this month, heading for the steepest one-month slide since July. Gold rose 0.3% to $1 232.94 an ounce, climbing for a fourth day. Base metals fell on the London Metal Exchange, with copper for delivery in three months down 0.6% and aluminum retreating 0.3%.

Read Fin24's top stories trending on Twitter: Fin24’s top stories